Bankruptcy information: Your 401K is it exempt ?

Most people who have come to see me have struggled with the thought of filing bankruptcy. The urban legend that people file bankruptcy because they want to take advantage of the system, it's just that an urban legend.

One of the mistakes I see is people who are struggling to hang on raid their 401K to pay their bills. Your 401(k) and some of their savings is exempt if you do decide to file bankruptcy. This is a particularly mistake for those unemployed people who who are within 10 years of retirement. Recovering your 401k savings is a 15 year time span is unlikely .It's important that you be realistic in your plans.Your retirement is going to last a lot longer than any credit score dings that will happen if you decided to file bankruptcy